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tv   Closing Bell With Maria Bartiromo  CNBC  October 10, 2013 4:00pm-5:01pm EDT

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to the contrary of what we're seeing here today. >> keith, thanks very much. always appreciate your comments here. we are going out with a 320 point gain. one of the strongest days. this is the second best day of the year for the stock market in 2013. much more to come, including that key meeting at the white house, coming up in the second hour of the "closing bell." i'll see you tomorrow. rock 'n' roll on wall street. hi, everybody. 4:00 on wall street. do you know where your money is? welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock x change. big rally on the street today. investors turning optimistic washington may be nearing a deal on the debt ceiling. take a look at how we're finishing the day on the street. at the highs. dow jones industrial picking up volume as we approach the close. up 322 points. better than 2% on the dow. finishing 15,124. nasdaq up 83 points. check out the nasdaq. technology on fire today. biotech also bounced. up 2.25% on the nasdaq.
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3760. s&p 500 up 36 points. up by better than 2%. all the major averages clapping on 2% moves. stocks skyrocketing on signs today lawmakers are moving towards some sort of a short term debt ceiling deal. bob pisani, they sure made a big bet that the meeting scheduled for 4:30 p.m. eastern time at the white house will go well. that's what we're focused on now, bob. >> that's right. all of this on a belief that a deal is going to happen. take a look at the dow jones industrial average essentially closing a t the highs of the day. we were all up throughout the day. took another leg up on the hopes, again, these are hopes that maybe getting the government back into business, getting the government working again, might even be part of the deal. most people thought it wasn't going to happen throughout the day. that aspect of it. but that's -- hope springs eternal. take a look at what we had moving today. the important thing is people kept saying we're getting ahead of ourselves. there's no real deal out there. the important thing is the debt limit is the critical issue for traders. that's where the default risk is. the government shutdown is
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secondary. if we get a deal to keep the government open, hey, that's even better. let's take a look here. everywhere you went today, 2% on the upside. you throw a rock on the floor. you hit 2% on the upside. mid cap. small caps. big caps. everything up 2%. everywhere in the sectors, too. financials. anything cyclical. financials, industrials, materials, discretionary stocks. that is very rare, folks, to see big sectors like that all up more than 2%. how about high beta names. we've been talking in the last few days about this selloff in high beta. all of them came back today except for green mountain. why the selloff? folks, that's where the profits are. look at the profits on the year on these stocks you'll see hedge fund guys want to protect all that money they've made this year. maria, back to you. >> bob, thanks so much. want to dig into what's going on today in this big rally on wall street. joining me now to talk about it is marion bar tell. dennis gartman. benjamin pace from deutsche bank private wealth management. good to see everybody. thank you so much for joining
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us. you know, wow. what a good day, mirarion. you want to put money to work? >> we certainly do. what washington did was tell d.c. they want a deal. my only concern is they do a deal on the dell creting for only six weeks. then we're going to be right back where we started from again. the only concern is that the volatility will eventually continue. we've been telling clients to stay the course. we've been telling them to buy the equity market and lighten up on fixed income. >> you have that concern. i've got another concern. here is my concern. harry reid just said about a half an hour ago, we will not negotiate on budget issues with republicans unless the government is reopened. the republicans are saying we cannot pass, will not pass, the leaders will inform the president of this at 4:30, a debt limit extension without talks beginning immediately prior to the government reopening. this is semantics. this is so ridiculous, really. if the government -- if the president says, no, no, no, no. i'm not talking about any debt
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until i see the government opened again, okay, if that happens, are we going to be down 300 tomorrow? >> it's not going to happen. the president is going to act like an adult. the republicans have tried to act like an adult. i wonder who that was who made that statement other than reid from the republican side. my bet is this will all be ironed out by 4:30 this afternoon. i think this was something important. i love the line i heard earlier today. we haven't kicked the can down the road, we've nudged it down the road. which i thought was wonderfully funny. a nudge in this time was pretty good. adults are back in the room for the first time in a while. >> chris, what are you telling clients? >> we're telling them to stay invested as well. i agree with my colleagues over here. this is the new normal in washington. right? political dysfunction is something we have to deal with. ultimately the process we expected it to go. something like this. rhetoric gets really tough. both sides dig into the dirt. you expect both houses -- both sides of congress, democrats, republicans, to actually speak this way. you get that out. the adults will ultimately take over at the end. i don't think either party wins.
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neither does the president. if we go too far down this path. we don't kick the can down the road and we ultimately default on a debt, everybody loses. >> the rubber is hitting the road right now. this meeting starts in about 25 minutes. we'll see if they walk out saying, look, he doesn't want to negotiate and we don't want to negotiate unless government does open or not open. >> hay say a 320 point rally on the dow today. they're not going to risk a 300 point decline tomorrow morning. >> i agree. >> they're not that stupid. i would tend to agree. ben pace, let me get your take on all of this. first of all, on the economy. have we already seen an impact to the overall economic landscape given this shutdown and this anticipation, or we avoided it? >> the shutdown itself we don't think has much of an impact unless it lasts a really long time. the bigger impact is just the uncertainty, right? one of the last legs of the economic stool that we really need is businesses to start spend ing. they've been really hesitant. we're seeing better ism numbers. we're still not really seeing things like durable goods orders. if businesses are concerned about what's going on, they'll
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just hold off again. we need to see a resolution for that reason. really looking forward to concentrating on economic and market fundament als again and not just politics. the type of multiple expansion market we've had this year, we think that might be able to continue into 2014 if we get rid of some of these uncertainties. >> so the s&p 500, showing a gain for the fourth quarter of 2013. the index closed at 1681 before the shutdown. within the s&p sectors that you think will be doing well, once we get through this short termism. we're going to focus near term on earnings, right? how do they look? >> we're going to look at earnings. we're also looking at economic growth improving. that's why it's so sad what's happening in washington. because the worst impact is actually to gdp growth. we're forecasting growth will continue in 2014. we want to shift more towards cyclicals. more towards energy, industrials, and tech.
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>> dennis, where are you seeing the flows? >> i only trade for my own account. i put my money to work aggressively in the last two days. i buy simple things. i want to own the things if i drop them on my foot will hurt. i want to own steel. i want to own copper. i want to own railroad. >> tangible. >> the things that are really incumbent in economic growth. i don't understand high-tech. you can have big pharma. i'll take steel, copper, railroads. >> you're taking the cyclicals. >> that's also very dependent on the economic backdrop. >> absolutely. >> look at the shipping index. is that jiving with what you're saying. >> i think the shipping index was a great leader to tell us that what's going on out in the world is that the world really is growing. we just had political problems here in the united states that made us look rather foolish. get the political problems aside, things can look very good very quickly. >> what do you think, chris? >> both those two are stealing my thunder. i have to tell you. i like cyclic ams as well. you've been in an virlt for the last couple of years where flows into fixed income have been very, very heavy. it's been a very yield focused environment. lot of defensive issues out
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there can have that type of yield characteristic like these bondlike equities so to speak. utilities and reits, what have you. i think cyclicals are still cheap. economy is getting better. housing is one of the areas which i really like. i still think we are in the midst of a housing recovery. a little pullback the last couple months as rates backed up with taper talk. affordability still good. people are sick and tired of paying high rents. as confidence increases, this is the key. this is the biggest issue for people when they decide if they want to buy a durable item, i specially a house. usually the largest asset or loan on their balance sheet. if confidence comes back and affordability is there housing is the way to go. >> it's amusing to me. the old graveyard on the panel. my first mortgage was 11.5%. when i hear people complains mortgage rates have gone up .75%. >> i agree one day we're going to look back at this period and say remember when we could have had a mortgage at 3% or around that? >> exactly. >> at the same time, it has
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caused some trepidation as rates have gone up. >> you know what's really -- the big thing was an interesting conversation this afternoon. somebody was talking about the fact that because the government had shut down, he couldn't get any mortgages through because of dodd/frank. the mortgage business shut down. get the government reopen again. housing picks up dramatically. >> ben, you agree with that? would you buy -- what sectors are you buying here if you do believe this market continues going into year end? >> everybody took it to a sector. i'll give perspecti perspective. we're overweight u.s. bringing money back home. we'll get through this. the u.s. fundamentally still looks the best of the developed markets. we are underweight emerging markets for the first time in a long time. both equity and debt. because we think the major uncertainties are there. they will continue to be there with slowdowns in some of the once high growth rate countries. >> all right. let's talk international for a second. i was at the mario draghi lunch today. one thing that really cemented
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this feeling the stimulus is going to be there for a long time is he said rates in europe are going to stay at present levels or go lower. there's no end in sight to the stimulus there. have we seen the best in europe for the near term? would you want to be buying europe? >> i think you ought to buy everything. >> oh. buy everything. >> we're buying europe, too. >> you want to buy everything. sometimes we get to be too specific. sometimes it's better to say, things are doing well. the uncertainty is lifted off the table. >> if you want to do valuation and just look at the developed markets, europe is the most attractive market. >> emerging markets, yes or no. >> no. short term, yes. longer term, no. >> no on emerging markets. what's the story. >> i like them. >> ben, you like e mernging markets, too. >> no. underweight emerging markets we are. be careful about europe, too. equal weight. think of currency hedging there, too, in the same way you made extra money by hedging the yen. >> all right. great, great conversation. we appreciate everybody's time. thank you so much. want to take it back to the usa
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right now for the president and john boehner will have new data from an nbc "wall street journal" poll for their meeting in a few minutes. john harwood in d.c. >> one result released now for the nbc news "wall street journal" poll. full results at 6:30 tonight. that shows that the message from wall street, the white house, democrats in congress, some republicans, has gotten through about the importance of raising the debt limit. by 63% to 15%, americans say the failure to raise the debt limit would be a real and serious problem for the country. just 15% say it wouldn't be a big problem. that is a rebuke to those within the tea party. some republican members of the congress who've been saying, well, it's not such a big deal if we don't raise the debt limit. the fact there is such a solid wall of public pressure in favor of doing that, even though it's an unpopular sounding thing, gives some indication for why republicans are moving on their position and the speaker is
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going to be discussing with the president this afternoon the republican proposal for a short term increase, maria. >> john, thank you so much. for more on the stunning gains in wall street and developments in washington, jana partners, founder. find out how high he thinks this market goes once washington gets its whole act together. plus, his play list of companies that are ripe for shakeup. also ahead -- >> i'm ashamed. i'm embarrassed. all of us should be. >> don't miss my one on one interview, exclusive with senator john mccain after his outburst earlier in the week. what does he think about today's events? we'll take you to him. mad men in the house. advertising legend jerry della femina weighing in on the d.c. mess. we'll get the take on small business. wait till you hear what he thinks about digital advertising
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welcome back. check out the numbers. the numbers tell the story. the dow posting the biggest point gain of the year today, up 323 points. better than 2%. dominic chu running through the winners and losers. >> we begin with best five. which topped the gainers on the s&p 500 large cap index. this amid continued signs of steady gains in sales improvements. best buy is already up about 230% so far this year. also boeing leading the way higher for the dow jones industrials. a buy rating saying it will continue to benefit from strong industry fundamentals. gap stores moving lower in after hours trading at september same store sales fell 3%. the street was forecasting a 1.8% rise. again, some movement there in the downside. a tough day for l brands. a weaker than expected 1% in september. they own victoria's secret and bath & body works.
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check out gold. of course, safeway reporting weaker than expected third quarter earnings. again, revenues came in better than expected at $8.6 billion. over to you. >> thank you so much. this market skyrocketing today. given wall street a second best day of the year on hopes that a proposal by house republicans will end this debt ceiling standoff. president obama meeting the gop leadership in about ten minutes. we are monitoring the meeting. the results of that meeting very well may dictate if this rally is sustainable or not. joining me now to talk about these incredible market moves and a lot more in an exclusive interview right now is barry rosenstein. founder of jana partners. nice to see you. >> nice to see you, too, maria. >> as well as talking about specific situations which i want to get into. you've been making news with jana partners recently. you're an individual who's overseeing $7 billion plus assets under management.
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what does a guy like you think when you see a market up 300 points with this back and forth in washington? >> well, look, it's a relief rally. i think people are just, you know, pleased that, you know, you've managed to kick the can down the road by six weeks. i don't think it's resolved anything. but i think, you know, the downside was so horrendous people are just, you know, thrilled today that at least we don't have to focus on that for a while. >> that's why you have the specific situations in place. how you run your lives, you know, being dictated by the meetings going on in washington. >> yeah. we don't run that way. look, we take care of the tail risk. then otherwise we look at individual names. we look at them, you know, when they hit our buy price, we buy them. when they hit our sell price, we sell them. >> what are you screens? before we get into outer wall and safeway, which are obviously two very important situations for you, what are your screens that indicate, okay, this is the situation i've got to get involved with. >> we don't necessarily screen.
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we look for two things. value and catalyst. we look for companies that are cheap. tax free cash flow. basic businesses. easily understandable business models. recuring revenue extremes. there's got to be a catalyst. it could be, you know, a wide range of catalysts. could be restructuring, recaps, management changes, what have you. sometimes we'll be the catalyst. >> you have been a catalyst. let's talk about outer wall for a moment. your newest investment. what are you looking from outer wall to do? >> outer wall, as you know, runs red box kiosk, coin star and e coe atm. this company gushes cash. the bears are concerned that the management is going to squander the cash. we think -- we think we could change that debate and get them to utilize the cash more efficiently, return cash to shareholders. that's one thing. secondly, the bears also are concerned about red box and whether it's a declining business. but you know what? red box is a growing business. we think it's got a long, long
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life to it. and then thirdly, i think there's some strategic alternatives that i'd rather not talk about right now. but, you know, we're going to discuss with management. i think there's a lot of possibility. >> you own 13.5% of this company. are you getting a good reception from management so far? >> yeah. i think management is saying the right things. i look forward to continued dialogue with them. >> as soon as your name showed up in outerwall, the stock rallied. so clearly you've got that influence in terms of making changes at the company. in terms of strategic alternatives, i know you don't want to go there, but a sale can't be off the table. >> can't be off the table. >> nothing's off the table. >> nothing's off the table. there's a lot of options with this company. there's a lot of people interested in it. i've been contacted by a number of people since we showed up. >> in terms of shareholder moves, dividends, you know, making sure paying the shareholders, are you getting what you need there? >> we'll see. it just surfaced. we're in discussions with the management. we'll see where we go with it.
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but i'm pretty confident that, you know, they're going to try and do the right things and we'll come to some agreement as to the direction of the company. >> for a while this was a sector that we looked at. coinstar, the whole gaming area. this is a real stock specific situation. not a sector. >> yeah. look, we've got a lot of experience in this area. we have large position in safeway. as you know. we've got a large position in super value. we own 4.9% of netflix earlier this year. the whole eco system is something we're very comfortable with. >> what's with this ecosystem. where do you see the opportunity? if they're winning, the netflixes of the world, who is that impacting? >> look, this company offers first run movies for $1.20. it's a great alternative to video on demand at $4.95. there's a lot of people who are going to continue to use red box for a long time.
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>> you've got to expect prices are going to come down. you talk about $1.99, $1.29 for movies. this is going to dictate what happens in the industry. >> we're looking at the specific name. you know, to us it's extremely compelling. the price we came in at. we think there's tremendous upside from here. >> let me fwet your take on safeway. the company adopted a poison pill when you first showed up. >> that was a little disappointing. >> talk to me about that. you've seen that recently with a lot of companies. southbies did that. i guess the activist investor out there, people get afraid. companies immediately start making changes when you show up. >> yeah. you know, it's interesting. poison pills ten years ago, 65% of all companies in s&p had poison pills. it's down to 10%. boards of directors realize it's not best practice. antagonistic to shareholders.
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whe whens -- it's a negative signal to shareholders. i think it's a bad idea for a ceo to do it. i think it actually works cross purpose to what they want to achieve. you know, poison pills were put in place or developed to stop people from making coercive tender offers to take control of companies. that's not what an activist does. all they're doing is trying to stop somebody from owning more shares in the company and buying them from people who want to sell them. >> the perception of an activist over the years has been negative. in fact, you've got a broader strategy. you're looking at a situation that actually needs help, could be better for shareholders. >> look, one of the things i'm particularly pleased about is we have been a, quote, activist in probably close to 60 campaigns right now in our history. we have -- we've only engaged in one proxy fight. we've resolved every single one very, very amicably with the management teams. stocks have gone up in the vast majority of situations.
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very positive for the company both short term and long term. the managements are advised by the bankers. they tell them at least in our case, these guys do their homework. they come up with good ideas. they have shareholder support. there's no point to fighting. just try and work things out with them. and we do. >> have prices gotten away from you a bit given this market rally? are things getting expensive? >> given that we've filed -- we've got, like, five 13-bs on file, another one coming, you know, i don't think so. >> what's the other one coming? >> if i told you, i'd have to go to jail. >> then you'd have to kill me, i guess. barry, great to have you on the program. >> my pleasure. >> thank you so much. come back soon. hope you're not going to be a stranger. barry rosenstein joining us. more on today's mega rally that was pinned on hopes that the meeting between the president and republican congressional leaders at the white house at this hour will
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lead to results. just a few minutes away from that p that. coming up, senator john mccain. very outspoken about the mess in washington. we'll see what he has to say about this crucial white house meeting set to begin moments from now. also ahead, jpmorgan chase and wells fargo sharpening their pencils for earnings reports out tomorrow. in the end earnings could matter more to this market than any of this drama in d.c. the numbers you need to be watching for. back in a moment on "closing bell." jackie: there are plenty of things i prefer to do on my own.
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but when it comes to investing, i just think it's better to work with someone. someone you feel you can really partner with. unfortunately, i've found that some brokerage firms don't always encourage that kind of relationship. that's why i stopped working at the old brokerage, and started working for charles schwab. avo: what kind of financial consultant are you looking for? talk to us today. when you do what i do, iyou think about risk.. i don't like the ups and downs of the market, but i can't just sit on my cash.
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welcome back. more fallout from the debt ceiling mess. dominic chu with the story. >> remember yesterday we heard that fidelity, the big mutual fund company was in essence getting rid of some of the treasury securities that have payments due around the time of a possible debt issue. a possible liquidity issue with the debt ceiling. now jpmorgan investment management is doing the same thing. in a statement they said that as of october 9th, 2013, their funds, jpmorgan investment management, didn't own any securities issued by the treasury that mature or have scheduled coupon payments between october 16th and november 6th of 2013. that's that wheel house we're talking about with the debt ceil. in addition the funds at jpmorgan investment management have increased liquidity positions. that means they're raising cash. fidelity first. now jpmorgan investment management also, again, getting rid of some of those treasury securities to hedge their bets in case something does happen. although, maria, we will say
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this. jp morgan continues to think the probability of that event happening is low. >> thank you so much. this rally was based in d.c. today. long term earnings are what matter. tomorrow's a big reveal for two of the nation's biggest banks. jpmorgan chase and wells fargo earnings out. first thing in the morning, we're going to get ahead of that. kayla tausche, let's talk numbers. >> bank executives have been warning for months this quarter was brutal for the bottom line. trading revenues dried up as markets waited for that taper news that didn't come. mortgages dried up as consumers felt the pinch of rising rates. jpmorgan cfo marian lake said last month revenues could be down more than 35%. the bank has been bombarded with legal issues, too. executives will have to answer to that. lake also said the bank would be adding at least $1.5 billion to its corporate legal reserves. that's more than double what it added last quarter. it could cancel out any benefit it could get from releasing other reserves. the $119 per share wall street expects will have to come from better revenues, not these legal
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reserves. a source tells cnbc the $11 billion whopper settlement with the feds will not be announced tomorrow. the bank will have to provide clarity on the legal matters which it says could cost $7 billion more than it saved for. wells fargo, no friendlier. the bank laid off nearly 5,000 people to adjust quickly to the new reality. as deposits grow, margins expected to shrink. last two quarters saw strength in investment banks. canceled out weakness on the mortgage side. with no big deals investors except it to be tdoubly painful for wells. we'll be watching tomorrow. we'll have the latest for you then. back to you. >> we're on it. thank you so much, kayla. wems fargo cfo tim sloan will speak with me tomorrow in a first on cnb interview on the "closing bell." we'll talk earnings, washington dysfunction, fed tapering, a lot more. can't afford to miss that. join us for the cfo of wells
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fargo. timothy sloan is not the ceo. stocks soaring today in hopes of a government shutdown and debt ceiling deal. jackie deangelis. >> definitely seeing risk on day in the equity market. seeing that trickle over into the oil pits as well. west texas intermediate starting the day out flat. traders watching every headline out of d.c. very closely. if you look at that intraday chart, you can see a steady climb up each step of the way. west texas intermediate closing just above $103 a barrel. that was up coming off a little in the electronic section. the brent price, tensions in libya overnight increasing security concerns there because the prime minister was briefly detained. also some chatter in the pits today about the potential brewing of some protests in egypt. trader were worried about that. finally a tweet out from the israeli defense minister recounting an event from 40
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years ago. people misinterpreting that. that adding to the anxiety. put all these factors together and brent pop master's degree th -- popped more than 2%. >> plenty of action in washington. take a look at this live shot of the white house. the president and house republican leaders are expected to meet any minute now at the white house. senator john mccain will take the hot seat with me next. bob pisani on today's 323 mega point rally. keep it right here on "closing bell." it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world.
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welcome back. president obama and house republican leaders are scheduled to kick off a meeting at the white house right about now. we are waiting to see what happens next. the stock market, of course, betting big that it will go a long way to resolve the debt ceiling default threat. eamon javers is at the white house monitoring all the developments. did investors overdo it here based on what we heard from hari reid today saying this is a not starter unless the government shutdown meetly ends? what do you think? >> reporter: yeah, that's right, maria. investors really ought to be watching the outcome of this meeting right here. this is house republicans coming up here to follow up on their offer earlier in the day.
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now, we did have a little bit of actually movement here in washington today after days and days of total gridlock. house republicans said they would actually offer a proposal to send the clean debt limit bill up here to the white house to see if they would sign it. that's something new that we haven't seen before. the proposal would actually keep the government shutdown going. keep the government shut down. listen to speaker of the house john boehner earlier today in making this offer. >> it's time for leadership. it's time for these negotiations and this conversation to begin. and i would hope that the president would look at this as an opportunity and a good faith effort on our part to move halfway, halfway to what he's demanded in order to have these conversations begin. >> reporter: so halfway means a debt ceiling lift. but not a reopening of the government. the question is whether the white house will take that offer. we might get some more intelligence on that after they come out of this meeting that's scheduled to begin right as we speak just now. maria, we've got to watch for a whole number of factors including all the details in the
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fine print. one of the pieces of this bill i'm told is that under this new law, treasury would no longer ever be allowed to use extraordinary measures. that's something you can bet will not be popular here at the white house, maria. >> thank you so much, eamon. more reaction from someone who has been very outspoken on this d.c. fight. joining me right now to talk about what lies ahead, senator john mccain, republican from arizona. senator, good to see you. thanks very much for spending the time with us. >> thank you. i'm just living the dream. >> living the dream. yeah. that's about right. so what about what harry reid said, senator? that they will hold firm on the government shutdown having to end for any debt ceiling talk? i've got the quote right here. basically he's saying we're not even going to talk about debt. we're not going to talk about the debt limit until the government reop opens. the republicans i guess are suggesting that the way to get to a government opening, reopening, is to actually start talking. >> well, i think that it's very clear that the polls show that the american people are blaming
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more -- much more than the democrats and the president for the shutdown, they're blaming republicans. although the president's numbers and democrats' numbers are going down. just not as high as the -- not as badly as republicans. as you know, there was a gallup poll today that showed the favorable ratings of republicans at an all-time low. 28%. certainly there's more pressure on republicans. we need to stop. i guess we have -- i guess the house people have. maybe some of ours over here. we're not going to defund obama care. i've said that from the beginning. we've got to get the government reopened. there's too much damage. there's too much harm that's been inflicted on innocent people. let me give a small example. grand canyon, thousands of employees up there of concessionairs, not federal employees. they're having to bring food up there. that's outrageous. outrageous. >> are you going to encourage
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your colleagues, then? do you agree the government needs to reopen before any discussion happens on debt? >> no. what i'm saying is we sit down and seriously negotiate. there's several areas of agreement. get the government open. also then address the debt limit issue which is also an important one. we got to get the government open. and i think that there's some concessions that can be made by harry reid and the democrats. and also by republicans. and there's lots of conversations going on today. whether they will lead to a resolve, i can't be sure. at least we are talking seriously. republican and democrat. >> you make a lot of good points, senator. let's put, you know, the semantics aside in terms of when the government reopens and when the talking begins. what would you like to see from harry reid and company? what kind of concessions are you talking about? >> well, for example, things -- medical devices taxes, you know,
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is terribly unpopular. when we were voting on the budget, there was a roll call vote. over 70 members of the senate voted to repeal the medical devices tax. which, you know, has driven i don't know how many thousands of job overseas. i think that there is areas such as make sure that someone is qualified for obama care. there is a number of other areas that we could -- that are on the table that i think that most -- both parties could compromise on. but we need to get the government open again. and the american people really think we should do that. >> yeah. so have republicans given up, then, on repealing obama care at this point? i know you said it in the beginning, that that was not going to happen. do you think that the party has given up on it? >> well, i've seen statements by those who were raising all kinds of money and running ads about defunding obama care are now saying that's not their goal. as i told you before, in 2012, i
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campaigned all over america saying elect mitt romney and we'll appeal and replace obama care. the american people didn't agree with that. i think it was pretty obvious that we were not going to defund obama care. and we were sent on a fool's errand. >> well, was that the tea partyiers specifically putting that out there and have republican party leaders decided to break from the tea party? >> well, i don't know about breaking from the tea party. but obviously we all know that it was senator cruz and senator lee who were driving this. along with a large number of members of the house of representatives. so i think we know who -- what was driving it. the heritage fund and others that were running ads, spending hundreds of thousands of dollars that ended up with people calling my office and saying, why are john mccain in favor of obama care? that's a little ironic since i was fighting against it before they ever got to the senate. but life isn't fair, as jack
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kennedy said. >> senator, give us your sense of the color inside that room right now. the president about to do that meeting with the leadership. and we know where -- where both sides are in terms of digging in. how do you think this plays out? what do you think is going on in there now? >> i think it's important to have the conversation. and i think it's important -- and i think the president made a serious mistake for such a long time not sitting down and at least talking to these people. in '95 bill clinton was talking to them all the time. i think that was a serious mistake on the president's part. but i would also say that the real action right now is probably going to be between harry reid, mitch mcconnell and some of us who have been engaged in this issue for a long period of time. i think that -- that that's probably the best way it's going to come out. >> so if the president says, look, i'm not going to even discuss this until the government has reopened, does the house not pass it?
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>> the house, i don't think, will do the bidding of the president of the united states. but if there is a proposal that's agreed to here in the senate by republicans and democrats, and the president probably would be hard pressed to disagree with that if both members -- majority of members of both parties agreed to it. >> senator, good to have you on the program. thanks so much for your leadership as well. >> thank you. >> we'll see you soon. senator john mccain joining us in washington. bob pisani back here in new york on the floor of the nyc with the aftermath of this big rally. he's next. stay with us. before their gift helped preserve the point... before a credit solution was used to expand their business... before trusts were created for their grandkids' educations...
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welcome back. the debt ceiling deal in washington, fueling a big rally in washington today. >> it was as broad as you would see in a long, long time. everywhere 2%. take a look at the dow jones industrial average. we were up early. stayed up throughout the day. a final leg up in hopes of maybe a broader deal than just the debt ceiling. ended up highs for the day. the market rally, dow and s&p, best month we've had in a listenilong time. advancing stocks, 85% of the market was up. advancing volume, 92%. you're not going to see those numbers very often. everywhere you look, s&p 500, mid cap, small cap.
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high beta names came back in a big name today. facebook, linkedin, tesla. why did they sell off so much? that's where the profits were. that's where the hedge funds have made all their money this year. 400% on tesla. 228% on netflix. do you think hedge funds with these kinds of profits are going to leave it to the government if it gets down to the wire and things look hairy? they're out of there. that's what happened the last couple of days. finally a lot of people debated on the floor, maria, isn't the market getting ahead of itself at this point? my position was the debt limit was the critical issue for traders. that's where the default risk was. once it was clear there was some kind of deal around that, that's why the market rallied. maria, back to you. >> thank you so much. meanwhile, day ten of the u.s. government shutdown. and the toll it's taking on the economy is growing daily. by the end of the week standard & poors is estimating the shutdown will shave about half a percentage point off of gdp to zero in on the consumer impact on small business, i'm joined by a man who clearly knows what consumers want. joining me exclusively, jerry
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della femina. good to see you. what do you think the consumer is thinking right now as this craziness goes on in washington? >> the consumer has to be terrified. the people in charge don't seem to know what they're doing. i'm a republican, but boy we did not cover ourselves with glory by shutting down the government. >> yeah. >> and once we did, we had to take the -- we did have to become aggressive. one way, when reid said he would not accept a short-term deal where they would fund children with cancer, he said that? i would have taken a 60-second commercial and i would run that commercial on every show. i would have people -- and i would end it with saying, harry, don't do this to the kids. end this right now. >> you're an advertising genius. >> at least we would have had -- right now we have the president saying he's being held hostage. he's not going to do this. this is not a strong president.
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for the first time he is able to say, i won't, i won't, i won't. >> yeah. >> you know what? he's going to get his way. >> let me ask you this. the latest -- they're meeting in washington. we know that harry reed says that the dems will not negotiate on budget issues with republicans unless the government is reopened. period. the republicans are basically saying, look, we want to get the conversation started. we'll work all weekend. we're going to reopen the government hopefully by tuesday. by let's know that we can start the conversation. if the president doesn't say, okay, we can start the conversation, this is not going to pass in the house. >> the president will say he will -- he will negotiate. >> you think he'll say it? >> he'll have to say it. then he starts to lose the bragging rights. the fact is, he will go along with it. both sides being hard nosed, the only people suffer ing are the american people. >> small business, have you seen an impact? you've started, five, six, seven small businesses and sold some of them as well. what's your take on small
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business? >> right now small business is terrifying. why take a chance? we have obama care. it's going to cost them more money than they ever -- and we lost the opportunity by closing up the government, we lost the opportunity for everyone americans look at this 110 times
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a day. they look at this. why wouldn't they suddenly if they are looking at their, click. it comes on. tune in immediately at the closing bell. god, he's handsome. >> i just tweeted that. >> see. it works. >> so you think it will be a big boom for comcast? >> yes. this is something that people carry around with them. >> people will look at it between 5:00 and 8:00 p.m. tonight people will look at it once every eight seconds. >> comcast is obviously the parent company of nbc news and cnbc, full disclosure there. >> i didn't know that. >> appreciate that. will stocks stage another rally?
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>> welcome back. 30 seconds on the clock for my
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guests to tell me what we should be watching for tomorrow. what do you want to be prepared for for tomorrow? >> we continue to like emerging market stocks as they outperform the u.s. on a relative basis. that's particularly important as we transition from summer into fall and then the holiday shopping season. >> all right. we will be watching all of that. and of course the white house front and center tonight that meeting. what are you preparing for for tomorrow? >> to see how the shut down has
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affected their book. in addition, both of those companies are two of the largest mortgage lenders. >> do you want to be buying or selling at this point? damon? >> we are clearly -- >> we're long term investors. >> all right. >> we're long time term buyers. we are definitely buyers. >> what about you? >> you know, i manage a fund and our signals currently have us. we're fully invested in the stock market. so we like this market. we like the u.s. >> all right. thank you so much. we will be watching those events next. stay with us on closing bell. bursting with opportunity,
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the president meeting with gop leadership right now with the white house. 83 points higher. we will have the very latest. tomorrow, more coverage on the short term deal and what happens next. that will do it for us. have a great night and i will see you tomorrow. fast money begins right now. ♪ >> this is fast money and i'm melissa lee. there is only one story that matters today and that is washington d.c. the market is on fire today. the dow, the s&p, and the nasdaq posting their second biggest gains of the year. the spotlight ahead of earnings thed


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